Formula 1 is one of the most technologically advanced sport - driven by cutting-edge research and developments, one might expect technology and intellectual property law to serve as a primary safeguard for innovation within the track. Surprisingly, Formula 1 teams infrequently use traditional IP options. What accounts for this trend?
Patents in a Nutshell
Patents are exclusive rights obtained for a novel invention, which is a product or a process that provides a new way of doing something or offers a new solution to a technical problem. The patent holder possesses the sole authority to prohibit or halt others from commercially utilizing the patented innovation. Put differently, patent protection entails that the invention cannot be commercially manufactured, employed, disseminated, brought in, or traded by others without the owner’s consent.
Pitfalls of Patents in F1
Once registered, a patent grants exclusive use to the owner for 20 years. However, the process to obtain a patent is somewhat lengthy. It takes an average of over 500 days for the publication of the initial examination. This does not align well with the dynamic nature of F1. Essentially, technology would be superseded before being examined, not ever registered.
Need for Speed
The rapid pace of technological advancement in Formula 1 is partly driven by the FIA Sporting Regulations and the FIA Technical Regulations (the main regulatory documents shaping F1) which often drastically change from season to season. Aiming at preserving a level playing field, the FIA introduces changes to respond to advancements that certain teams develop in the previous season. As a result, patented innovations can become obsolete due to regulatory shifts by the end of a season. This discourages teams from investing in patents. For instance, the 2021 regulations altered the design rules for car floors, limiting specific aerodynamic techniques that had previously enhanced downforce and grip but made it harder for cars to follow closely and overtake. The rule change was intended to boost competitiveness and maintain interest.
Limiting Factors
There are other obstacles in the patentability of such inventions. F1 teams often struggle to meet the criteria needed to secure a registered patent. Many of their innovations fall into the complex category of "excluded subject matter," such as software, mathematical methods, and presentations of information. Additionally, because racing cars are frequently modified from race to race during a season, the inventions may not always meet the requirements of novelty and inventiveness.
The requirement of a patent to be disclosed to the public also renders the possibility of patent protection less advantageous. This may lead to competitors to steer their own research and development efforts to build around the published patent. There has been a trend that, if a team opts for patent protection, this is done through another related company. Although no patents can be found under Scuderia Ferrari, a considerable number of patents will return if searching for Ferrari SPA. Similarly, McLaren F1 file under McLaren Automotive Group.
Advancements on the road
It is more common that inventions formulated for the paddock are patented for their applicability off track. Most of the innovations found in road cars can all be traced back to the track. Constructors might consider pivoting the initial invention for the creation of a commercially viable option. This is done by repurposing an invention for the applicability of road legal cars.
Inventions in F1 shape the future of everyday cars, with, components such as the rare view mirror, disc brakes, steering wheel buttons and carbon fibre amongst others. It is not always easy to derive the road legal version of the invention, due to the use of trade secrets to protect most inventions.
Alternative Protection
F1 teams typically protect their innovations using trade secrets. Under Article 39 of the TRIPS Agreement, a trade secret is defined as information that is not commonly known or accessible to those who typically deal with that type of information, holds commercial value due to its confidentiality, and has been safeguarded by reasonable measures to keep it secret.
By relying on trade secrets, teams avoid disclosing details about their innovations, particularly those concealed beneath the car's bodywork. To maintain secrecy, teams go to great lengths, from using screens and covers to hide the physical car at racetracks to issuing encrypted USB drives to prevent the leakage of digital data and designs. As a result, unless there is a breach of confidentiality or an accident that reveals the inner workings of a car, teams can keep their inventions concealed.
The drawback to trade secrets is that secrets can be leaked. F1 has faced several high-profile spying scandals. The infamous "Spygate" in 2007, involving McLaren, Ferrari, and Renault, is one such example. In this case, McLaren was hit with the largest fine in sporting history of over 900,000 EUR. More recently, an employee was accused of attempting to take technical files with him before moving to a rival team, though the transfer did not happen. It is known that the market is quite fluid and technical persons and engineers move between teams. However, trade secrets can also be compromised by factors outside of deliberate leaking by stuff. At the Monaco Grand Prix in 2023, teams took the opportunity to analyse the underside of the Red Bull whilst it was being craned to safety after a crash.
In conclusion, the very essence of Formula One goes against the advantages of patent protection. Whilst patents are widely used in the automative industry, F1 recognises that this route removes the sport’s distinct where speed and skill converge.
What this means for you
It is very important to understand which is the best intellectual property route in your own case. It is clear that different ways of protection have different advantages and disadvantages, and it is vital to understand what works best for you.
How we can help
We understand the importance of protecting your new idea and invention. Our team is constantly updated with the latest changes. This does not only include legislative changes, but also market specific and technological changes which are shaping the future of intellectual property.
